What to do with $325k

Discussion in 'Share Investing Strategies, Theories & Education' started by Bloss, 23rd Jul, 2007.

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  1. TPI

    TPI Well-Known Member

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    It's not my 'original idea' and I never claimed it to be! - I said I have read about it recently and am posting it here to share, and as I already said to you, I'm sure not wasting my time referencing and quoting in all my posts!!! And, I am not claiming to know that much about it either, which is why I posted a thread on it. Happy to be corrected and shot down.

    GSJ
     
  2. Handyandy

    Handyandy Well-Known Member

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    If you do understand what Julie refers to then maybe you could explain further?

    How you can turn a taxed income namely the income after CGT and CGT exemption can be turned back to become an expense for the trust in the form of a tax deductable contribution and then still avoid the 15% contribution tax?

    All I am asking is that you explain the information that you now depend on in the form of the post refered to as without a substantial explanation it is meaningless.

    Cheers
     
  3. TPI

    TPI Well-Known Member

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    I appreciate that, but as I already said in that thread, there's obviously a lot more to it than I described, and I do not know or understand it in any great depth to be able to help you out, so sorry, it is a bit meaningless.

    I am hoping Julia will be able to elaborate further when she has more time, she seemed to suggest that the overall strategy was possible though, so that's what I latched on to!

    I read the section Julia mentioned, but it's possible that I'm not following it correctly.

    At the end of the day, this stuff and most of what has been discussed in this thread, has absolutely no immediate relevance to me personally whatosever. I'm just posting as a hobby and for interest, and hopefully others have found this thread as interesting as I have!

    GSJ
     
    Last edited by a moderator: 9th Aug, 2007
  4. TPI

    TPI Well-Known Member

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  5. coopranos

    coopranos Well-Known Member

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    1) I would be picking my references more carefully, that forum has possibly the highest concentration of morons I have ever seen in any group of people.

    2) What that person is suggesting is pure conjecture. It completely ignores the fact that the reason lending has loosened is not because the risk of lending has increased, it is competition and deregulation. I cant see the competition going away.

    3) So what? If you have a 4 million in property geared at 50% or so, and have been drawing down equity to fund your lifestyle, and the lenders all for some reason decide they want to reduce their business substantially, who cares?? You are still sitting on a couple of million equity, chances are the rent is at least covering the interest payments if not giving you a little extra. You are still in a far far far better position with a ton of extra options available to you than someone who spent the same amount of time paying off their $300k mortgage.
     
  6. TPI

    TPI Well-Known Member

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    Yes, I agree :D !

    GSJ
     
  7. TPI

    TPI Well-Known Member

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  8. TPI

    TPI Well-Known Member

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  9. Glebe

    Glebe Well-Known Member

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    I think focusing on low-doc issues is a little off-topic...
     
  10. TPI

    TPI Well-Known Member

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    Really...last time I read, BB was getting LOC's setup to pursue a pure LOE approach, with no other initial source of income (apart from rents), so if he continued with this (I doubt he would want to or be able to), he would be relying on asset lending (as a non-resident) using no-docs/lo-docs.

    I'm just pointing out that with what is happening in the market at the moment, bank lending criteria/policy may change with respect to these loans and subsequently have an adverse effect on someone adopting a pure LOE approach. This is one of the main points detractors of the LOE approach seem to push.

    But, I'll think about starting a new thread anyway.

    GSJ
     
    Last edited by a moderator: 15th Aug, 2007
  11. Emoi

    Emoi Well-Known Member

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    Just moved into my new build in Rocky and getting things finished off.

    No landline or internet yet, so Telstra set me up with a NextG wireless device and mobile as a free interim service, so been out of the loop for a few days.

    Gotta remember this whole LOE thing is all a couple of years down the track yet.

    Have LOC in place now so will just sit on my hand's for a bit and see what happens over the next cupla months.

    No rush.

    Dave
     

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